2023 is gearing up to be a great year, so get ready to make your move.
It’s hard to believe that we just entered 2023. I’m excited about this year. All the news wants to talk about is housing crashes and breaking bubbles, but out of the last nine housing reports from a certain national news source, they were wrong nine times. Let’s talk about the one thing that I’m really passionate about this year: Real estate is local.
If you’re a seller, you want to have a professional tell you what the equity in your home is. If you’re a buyer, I highly encourage you to stay away from online bankers and to instead work with local bankers. I can pass on a few names if you need a recommendation. They’re doing really creative things, like buydowns, that won’t cause the market to crash and burn.
People are expecting interest rates to settle around 5%, so buyers should get off the fence. You don’t want to sit there and wait. Sellers should understand that the average historical appreciation of a home is about 4% per year, not the 30% that we saw last year. That was caused by the money that the federal government pumped into our market over the last couple of years, which caused inflation. Many people don’t realize that mortgage rates are tied to the inflation rate. As the inflation rate comes down, mortgage rates will come down too.
If you’re a seller, get your home ready for the spring market. If you’re a buyer, connect with a real estate agent that can help you with your financing. Talk through the costs and do some net sheets to make sure that the interest rate and the home you’re buying will be affordable to you. Don’t stay out of the market because rents are still going up. They continue to rise because the investors in that market are paying a higher interest rate than you would if you buy a home, so stay in the market.
Don’t be worried about 2023, because it feels like it’s already set up to be a good year. Let’s have a successful year! If you have any questions, contact me by phone or email. I look forward to hearing from you.